Carrier AT&T Next Advice??

Ok, so I'm working my debt snowball and right now, the next one in the row is my iPhone 6 installment plan.

I'm planning on getting the next iPhone when it comes out but this would be my first Next upgrade event.

I'm wondering would it be best to just pay it off now and save the $24.97/month until September or wait until then, pay the extra payment, and trade the iPhone in.

It feels weird just giving it up, but at the end of the day, I'm probably going to either sell it or let it sit in a drawer. I've sold my last iPhones, one was on eBay, the other to a coworker, who shattered the screen within weeks, then it started overheating and she just got a new phone.

I'd probably lose a bit of money by turning it in but the experience will be a lot faster and easier.

Just speaking to the concept of a debt snowball, you typically focus either on the highest interest (most savings) balances or if you want the satisfaction of paying off debts, the lower balances.

In this case, the Next plan doesn't really factor in because it isn't debt in the traditional sense of the word, since you aren't paying any debt service costs (interest).

All you've really done is take the amount and spread it out over a period of time (again without interest).

But speaking to your question about Next in general, yes, AT&T is essentially charging you a "convenience" fee for the privilege of turning it over to them versus selling it third party (you've paid more than the phone is typically worth so if you turn it in, you've lost that difference).

There are lots of analysis on the cost/benefit there, but it generally comes down to how much you value not having the hassle/risk of selling it third party. That's different for every person.

Another way to think about it is if you have decided to do the yearly upgrade, you're paying XX a month to have the newest iPhone, all the time. Some people just accept that monthly cost and move on to other problems in life.

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